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CATHERINE REAGOR REAL ESTATE
Millennials dive into buyers pool for houses
Ready for the hunt CHRISTINE GRITMON JOURNAL NEWS
It’s spring, and the “for sale� signs are sprouting up. But what should you know — and do — before you go out house hunting? And what should you even be looking for once you’re out? We asked Gary Herbst of Buyer’s Edge Realty in Tarrytown, N.Y., an agency
PHOTO ILLUSTRATION BY ALIYA MOOD/ THE REPUBLIC AND THINKSTOCK
Have realistic sense of budget, needs and wants before you start looking at houses
that represents only buyers, not sellers, what prospective homeowners should know before they hit the hunt.
All about the money, honey Understand your borrowing power: Obtain pre-approval from a bank or mortgage company, and figure out what you can afford to spend on a monthly PITI (princi-
ple, interest, taxes and insurance) payment. Don’t give the bank a number you’re looking to hit when you apply for pre-approval. Instead, let them tell you how much they’re willing to lend based on your income, assets, employment and credit history.
Something, or actually a lot of someones, was missing from metro Phoenix’s housing market last year. A dearth of first-time buyers, mainly Millennials, was the main reason the Valley’s housing recovery stalled. But a growing number of these first-time buyers are no long avoiding commitment to a mortgage. As a result, bidding wars are erupting over affordable Valley houses, which has led to the 10-percent increase in home sales this year. Many Phoenix-area real estate agents have seen their list of young clients looking to buy multiply during the past six months. That’s great anecdotal evidence Millennials are no longer absent from the housing market. But now the data proves it. Federal Housing Authoritybacked mortgages, used primarily by first-time buyers, nearly doubled in metro Phoenix during April compared to the same month last year. Tom Ruff, real estate analyst with The Information Market owned by the Arizona Regional Multiple Listing Service, told me Millennials are just beginning to make their mark on the housing market. He expects FHA loans and Millennial buying to keep climbing during the next few years. FHA loans accounted for 32 percent of all home sales in April of this year, according to Ruff’s latest STAT report. That compares to 18 percent in April of 2014. President Barack Obama’s move to cut costs on FHA loans in half, announced during his Jan. 8 speech in Phoenix, has obviously helped entice more first-time buyers. Some housing analysts and market watchers didn’t think his highly touted FHA announcement would give the housing market the boost it needed. We were wrong.
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find your next place. PHOENIX | 31717 North 16th Avenue | Open Today 1-4PM
BIG BASEMENT BEAUTY. An incredible T.W. Lewis built home MLS# in spectacular Sonoran Foothills. Elegant finishes throughout. Bedrooms Impressive granite island kitchen with stainless appliances, gas Bath cooking, farmhouse sink and dark cabinetry. Grand dining room. Pool Wonderful fireplaces. Rich hardwood and Travertine floors. Double doors reveal the king-sized master. Gorgeous redone baths. Custom Sq. Ft. wet bar, two storage rooms and bonus room downstairs. Lush lawn Parking and paver patio. View fencing overlooks natural Sonoran desert. Lot Size Mountain views. Gated community with inspiring clubhouse, ZIP Code beautiful community areas, pool, picnic pavilion, volleyball, tennis, basketball and trails to nearby mountains. A must see! Online Pics – Joseph Callaway Price
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PARADISE VALLEY | 7528 North 66th Street | OPEN BY APPOINTMENT
SPECTACULAR OPULENCE IN PARADISE VALLEY. MLS# Absolutely magnificent, this spectacular estate is designed for the Bedrooms ultimate in opulent living, dining and indoor/outdoor entertaining. Bath Grand formal spaces. Dramatic living room with showcase Pool fireplace. Dazzling dining room with twin chandeliers. Virtuoso kitchen with the finest appointments, beautiful beamed ceiling, Sq. Ft. butler’s buffet, catering pantry. Family room with swank wet bar, ZIP Code floor-to-ceiling fireplace column. Luxurious master retreat with blissful bedroom, lavish bath, couture closet. Plush library, theater, Online Pics Price wine room. Smooth-as-glass pool, spillover spa, lush lawns, archaccented patios. Posh guest house. Visit tourfactory.com/716583. See inside for details and cross-streets.
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